A new buying wave threatens US shares in May .. do the indicators come up?
This returns to the forefront to the famous investment base among traders in the US markets who say: “With May and moving away from the market,” a rule based on a historical note that shares often record a poor performance during the summer months. This trend is based on data contracts that have shown in the market after April in the market, causing many investors to reduce their exposure to stocks during this period. Noted investment analysis showed that investment in a 1993 fund was followed by the S&B 500 index during the May to October period a cumulative return of 171%, compared to a 731% return from November to April. This pattern was last repeated during the period from November 2023 to October 2024. Seasonal effects are one of the many factors that investors analyze to understand how shares perform in the coming weeks, although their confidence is considered reliable, shaken by the instability of Customs Definition Policy pursued by President Donald Trump. Conflict with the “Sell in May” base if the old base is relied on its own, it seems contradictory to the strong recovery indicators that take place in the markets, despite the recovery of the “S&B 500” index with 12% of its lowest levels recorded this month. However, the index has been 5.5% since the beginning of the year, which reflects the continuation of the uncertainty in the market. “The scale tends to benefit those who sell in May this year,” says Tyler Richce, editor, adding that the risks indicate the possibility of the S&P500 index to a significant decrease next month. On the other hand, given the long -term performance, clearly shows the greatest impact of the “sale in May”, where investment in the “S&B 500” achieved during the May to October period over the past 74 years, a cumulative return of 35%, compared to an increase of 11,657% during the other half of the year, and the “Calendar of the Calendar” of the Calendar “. The challenges facing the recovery in shares will face challenges this week that include profit reports and market data, focusing on the US post report on Friday. Some indicators have shown that the buying signals have purchased, including the decline in investor moral earlier this month and the closure of the S&B 500 above the level of 5500. Although this style is not a fixed rule, the relatively poor performance of the S&B 500 index during the May-October period was clearer during the years when the market started with a poor start in the first months of the year. Facebook -data showed that the box following the “S&B 500” index recorded an average decrease of 0.4% in May, in the years when the year started with negative returns until the end of April. The SPDR S&P 500 ETF Trust- fell 5.4% this year until Tuesday. Richie also indicated that the seasonal style is more important in the years when the market fluctuations are high with the May entry. The effect of fluctuations on the market and although the “Vix” index (the Fear Scale) has decreased from its highest levels in a few years, which was recorded earlier this month, it is still swinging the level of 25, compared to the long -term average of about 20. Mostly from the home was suffered from the mostly of the domestic parties, which is mostly rumbling on the mostly of the household parties on the mostly on the mostly of the household parties. Could end in July, with the exception of China. Although such a result can strengthen the success record of the “BAQ in May” base, it will also be additional proof that the fluctuations of global trade wars are probably the most important driving force for market movements. Jay Woods, the world’s most important international strategy at Freedom Markets, said: “We are now in the world of customs duties. We are more pressure on Washington and customs discussions more than any other seasonal direction.” At the same time, most market monitors argue that the average investor will achieve better results if he keeps a fixed investment plan for a long time, instead of expecting the timing of the access and exit of investment. (Follow -Up market movements). The Facebook analysis found that the mere purchase and retention of investors with the documents of the SBRS and B500 ETFTEST Fund would have achieved a return of 2100%since 1993.